Next Level Properties, LLC v. Carbonell (In re Carbonell)
- Summarized by David Treacy , U.S. Bankruptcy Court, Eastern District of Kentucky
- 3 months 2 weeks ago
- Case Type:
- Consumer
- Case Status:
- Dismissed
- Citation:
- BAP No. WW-23-1039-BGC (9th Circuit, Aug 08,2023) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Bankruptcy Appellate Panel for the Ninth Circuit dismissed an appeal of an order denying relief from the automatic stay to complete a foreclosure sale as constitutionally moot. No live case or controversy remained to be decided due to intervening events during the pendency of the appeal.
- Procedural context:
- Appellant Next Level Properties, LLC appealed the bankruptcy court's order denying its motion for relief from the automatic stay to complete a foreclosure sale of the debtor's property. While the appeal was pending, (1) the bankruptcy court confirmed the debtor's chapter 13 plan (which proposed paying off the secured debt on his property in full), (2) Next Level did not object to confirmation or appeal the confirmation order, (3) the proposed sale was rescinded, and (4) the foreclosure trustee returned the funds to complete the purchase to Next Level.
- Facts:
- Debtor Bernard Ancheta Carbonell owned a condominium in Seattle, Washington subject to a deed of trust. After he failed to make payments, a non-judicial foreclosure sale occurred. Appellant Next Level Properties, LLC offered the highest bid at the foreclosure sale and tendered the funds to complete the acquisition to the foreclosure trustee. Seven hours after the sale, the debtor filed a chapter 13 bankruptcy petition in the U.S. Bankruptcy Court for the Western District of Washington. The debtor's counsel notified the foreclosure trustee of the petition's filing, and the trustee did not complete the foreclosure process owing to the automatic stay. Next Level sought relief from the automatic stay under 11 U.S.C. 362(d)(1) and (2), and the bankruptcy court denied the motion. Next Level filed a timely appeal.
- Judge(s):
- BRAND, GAN, and CORBIT
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
